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Reference ID Created Released Classification Origin

07BUCHAREST12862007-11-16

15:03

2010-12-20

21:09CONFIDENTIAL

Embassy

BucharestVZCZCXRO8484

OO RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR

DE RUEHBM #1286/01 3201546ZNY CCCCC ZZH

O 161546Z NOV 07

FM AMEMBASSY BUCHAREST

TO RUEHRL/AMEMBASSY BERLIN IMMEDIATE 0283

RUEHC/SECSTATE WASHDC IMMEDIATE 7615

RUEAIIA/CIA WASHINGTON DC IMMEDIATE

RUEAWJA/DEPT OF JUSTICE WASHINGTON DC IMMEDIATE

RHMFISS/HQ USEUCOM VAIHINGEN GE IMMEDIATE

RHEHNSC/NSC WASHDC IMMEDIATE

RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE

RUEKJCS/JOINT STAFF WASHINGTON DC IMMEDIATE

INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE IMMEDIATE

C O N F I D E N T I A L SECTION 01 OF 03 BUCHAREST 001286

SIPDIS

SIPDIS

STATE FOR EUR/NCE - JUDY GARBER; NSC FOR STERLING

EO 12958 DECL: 11/16/2017

TAGS PREL, PGOV, KLIG, MARR, RO

SUBJECT: POTENTIAL IMPACT IN ROMANIA OF TEO PETER FINAL

OFFER

Classified By: Ambassador Nicholas F. Taubman for Reasons 1.4(b) and (d ).

1. (C) Summary: The impending final offer by the U.S. Army Foreign Claims

Service, Europe to the family of the late Romanian rock star Teofil Peter, who

was killed in a 2004 car accident involving Embassy Bucharests former Marine

detcommander, seems certain to have a significant, negative effect on the U.S.-

Romanian relationship. In the likely event that the family of Peter will go

public with the news that the U.S. government has met their multi-million dollar

settlement claim with an offer of only $80,000, Romanian leaders and opinion

makers will react loudly and emotionally, calling into question some of the most

important features of our bilateral partnership. President Basescu, PM Tariceanu

and other prominent politicians will almost certainly rally to the familys

side, even if some normally pro-American officials will still try behind thescenes to calm the anticipated public outrage. In particular, the popular outcry

over what will be seen by most Romanians as an insultingly small offer to

Peters survivors will prompt renewed calls, with much more potential popular

support, for the rapid withdrawal of Romanian troops from Iraq. Likewise,

backing in the Romanian parliament and among members of the public for the new

U.S. troop presence at joint U.S.-Romanian military facilities on the Black Sea

will plummet, at least temporarily. The November 21 notification date to the

Peter familys lawyers is fast approaching, and will nearly coincide with the

December 4 anniversary date of Peters death, the occasion for past anti-U.S.

demonstrations in Romania. In short, we are bracing ourselves for a stormy

downturn in the relationship, prompted by the continuing negative legacy of the

death of this Romanian cultural icon. Some of the damage to our popular standing

and to our interests in Romania may be lasting. End Summary.

2. (C) Teo Peter, one of Romanias best known and most beloved rock musicians,

was killed on December 4, 2004, in a Bucharest car accident involving the taxi

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he was riding in and the official Embassy vehicle being driven in the early

morning hours by former Bucharest Marine detachment commander Staff Sgt.

Christopher Van Goethem. Van Goethem departed Romania within a few hours after

the accident, under the terms of his diplomatic immunity, but many Romanians

viewed his abrupt departure before local investigators had the opportunity to

question him and conduct tests on his blood alcohol level as a slap in the face

and an effort to shield the Marine from justice. Demonstrations were held

outside the Embassy, and an effort was made to rename a nearby street after the

deceased musician. Sgt. Van Goethem did subsequently face a range of charges in

the U.S. military justice system. A military courts martial concluded in January

2006 that while he was guilty of making false statements and obstructing

justice, he was not guilty of the more serious negligent homicide charge. The

jury, somewhat unexpectedly, limited the Marines punishment to an official

letter of reprimand. This news brought, in turn, another wave of protests.

3. (C) The U.S. Army Claims Service, Europe currently plans to send legal

representatives of the Peter family final offers amounting to $80,000, divided

among three claimants, including Teofil Claudiu Peter, the musicians son. In

briefing material recently forwarded to the Embassy, the Armys Foreign Claims

Service states that the Peter family claims were adjudicated pursuant to the

Foreign Claims Act, which uses foreign law to measure damages. The

accompanying press guidance then asserts: That means the law of the country inwhich the claim arises are used -- in tQs case Romanian law. The awards are

consistent with Romanian court decisions measuring damages in similar cases,

the guidance continues, and reflect U.S. and Romanian principles of just

compensation and respect for human life. The U.S. Army Claims Service, Europe

documents go on to say that the Service contracted a prestigious Romanian law

firm to advise the Commission on the pertinent provisions of the Romanian law...

(and) determined that the amount requested by the claimants greatly exceeded the

economic loss substantiated by the claimants. Moreover, the Commission found no

relevant precedent justifying an award of moral damages anywhere near the amount

requested. Part of the award that has been approved will be centered on

reimbursing

BUCHAREST 00001286 002 OF 003

the family for the funeral costs of Mr. Peters burial.

4. (C) Teo Peters survivors reportedly initially requested a multi-million

dollar settlement. In a November 1 letter to the Ambassador from the Peter

familys law firm, Arent Fox, attorney John M. Gurley suggests that the

claimants are currently requesting an award of $1 million. In what is labeled

The Peter Family Claim: October 2007, Gurley cites various past precedents for

awards at that level or above, including for an Australian womans successful

claim for $1 million after being hit by a Navy servicemans golf ball, and a

$1.9 million claim to survivors of a teenage Mexican goat herder, the victim

ostensibly of an accident involving the U.S. military. Gurley also cites the $2

million awards presented to the survivors of the Italian cable car accident

involving a U.S. warplane, a case which has been cited repeatedly in the

Romanian media and by Romanian government officials. Gurley writes in his letterthat he had unsuccessfully requested a transfer of the claim from the U.S. Army

Claims Service, Europe in Mannheim to Fort Meade (the headquarters of the Claims

Service) or Washington, D.C. Citing the very discouraging signals the Peter

family has received to date from the Claims Service, Gurley concludes by saying

he hoped the Peter claim could be settled in a manner suitable to all parties

before the April 2008 NATO summit in Bucharest, asserting that it would truly

be unfortunate for Romania, as well as the United States, if the NATO summit

were to be marred by the U.S. governments inability to close the Teo Peter

matter in a fair fashion.

5. (C) Once the award is communicated to the familys legal counsel at Arent

Fox on Wednesday, November 21 (the day before Thanksgiving), we expect the

family and its legal representatives to move quickly to condemn the U.S. offerpublicly and to appeal to top Romanian officials and the Romanian media to put

immediate pressure on U.S. representatives for a higher award. Romanian MFA

officials have reported to us informally that the family has met with the Prime

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Minister and the Foreign Minister in recent weeks to express their determination

to conduct a public fight should the final award offer be unacceptably low.

Under these circumstances, and in light of the proximity to the anniversary of

the rock musicians death, we expect the Embassy to be the focus of multiple

demonstrations, including concerts and candlelight vigils. There will be a

renewed effort to rename after Teo Peter the street on which the Embassy is

located, and it is possible that city officials may accede to the anticipated

wave of public indignation over the amount of the award offer.

6. (C) Another report we received in recent days was a suggestion that Romanian

law enforcement authorities, working through EU channels, would attempt to serve

a legal summons to Van Goethem, who we believe is currently a U.S. Embassy

dependent at AmEmbassy Berlin.

7. (C) More seriously, we anticipate that the Peter award offer, and subsequent

media attention, will embolden critics of the Romanian deployment in Iraq, along

with other anti-American politicians like Chamber of Deputies President Bogdan

Olteanu, to call for the immediate withdrawal of Romanian troops. Under these

circumstances, they could build sufficient traction to reinvigorate the

opposition to Romanias support for U.S. efforts there, and potentially force a

change in policy. While President Basescu has been steadfast in his support for

our continued troop presence in Iraq, he would be conscious of the fact thateven before a renewed public outcry over the Peter case, only one-third of the

Romanian public supports maintaining troops there. Either way, reinvigoration of

the controversy over U.S. handling of the case will put our closest friends

within the Romanian government, including President Basescu, into a very awkward

political position. Likely enough, the Liberal Party and other political groups

hoping to find a hook to boost their support in the run-up to the November 25

Euro-parliamentary elections in Romania will wrap themselves in the flag and try

to capitalize on the political moment with anti-U.S. political rhetoric. More

broadly, news of the Peter award offer will cut deeply into support for the new

U.S. military presence at joint facilities on the Black Sea, including

Kogalniceanu air base and the Babadag training grounds -- at least temporarily.

While public approval of the bases has been steady, our contacts have always

cautioned us that it is vulnerable to concerns over an increased terroristthreat to Romania -- and to negative stories concerning the conduct of U.S.

service personnel, with the first point of reference the Teo Peter accident and

the subsequent handling of the charges against Sgt. Van Goethem.

8. (C) There are other, less predictable, risk factors at play. In the wake of

this weeks controversy over the Ambassadors criticism of the Parliaments

efforts to undermine the independence of Romanian prosecutors and their ability

to investigate cases of bribery and corruption, a controversy over the Teo Peter

award could enable our critics and opponents on the Romanian political scene to

undermine other important initiatives which are just gathering momentum. First

and foremost among them is our accelerating effort, alongside Lockheed-Martin,

to persuade Romania to pursue an F-16/JSF option to replace the countrys aging

MiG fleet. Lockheed-Martin, in tandem with allies in the Presidency and Ministryof Defense, are seeking a sole-source route to the fighter plane decision,

which they do not want to see tied up in the Brussels bureaucracy by the F-

16/JSFs principal European competitors, Grippen and Eurofighter. This was

always going to be a tricky exercise, with an expectation that supporters of a

European fighter option would loudly cry foul. A firestorm over the Teo Peter

case could possibly represent a tipping point away from a U.S. option, if only

because of the optics.

9. (C) What little guidance we have received from the U.S. Army Claims Service,

Europe suggests that all Romanian media inquiries are to be steered towards the

USAREUR public affairs staff, or alternatively USMC spokespersons at Quantico.

This will limit severely our ability to respond here in Romania, and to help

address some of the most pernicious charges that we will face. We believe thatthe risk of unintended consequences in this media strategy, across geographic,

language and cultural barriers, is huge. That, too, has to be factored into our

overall risk assessment of the impending Claims Service actions.

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10. (C) In short, our hope is that this latest policy and public affairs

challenge related to the 2004 car accident will be manageable. But we are

concerned that under the present circumstances, some lasting damage could be

done to our core interests, including keeping Romanian troops deployed in Iraq

and continuing to build on the positive momentum in our close defense and

security partnership with Bucharest. This has been an especially difficult issue

from the beginning, and remains the biggest single black spot in our recent

bilateral experience. TAUBMAN

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